Section 8 Fair Market Rent (FMR) for ZIP 37301 - 2027

Location: Grundy County, TN | Metro: Grundy County, TN

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$940
1 Bedroom	$990
2 Bedrooms	$1,230
3 Bedrooms	$1,520
4 Bedrooms	$1,690
5 Bedrooms	$1,960
6 Bedrooms	$2,195
7 Bedrooms	$2,371
8 Bedrooms	$2,490

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,528

Median Household Income

$35,417

Housing Units

757

Renter Percentage

8.8%

Occupancy Rate

81.0%

Renter Occupied

The analysis of Section 8 cap rates for ZIP code 37301 reveals an interesting contrast between federally mandated Fair Market Rent (FMR) and actual market rents. For a two-bedroom unit, the annualized FMR set at $1,000 per month translates into an implied gross yield of approximately 5.86%. This calculation is based on the median home value of $204,804 in the area. To arrive at this figure, multiply the monthly FMR by 12 to get the annual rental income ($12,000), then divide by the median home value.

In contrast, the market rent of $967 per month, derived from Census ACS data, yields an implied gross yield of about 5.65%. The computation follows the same steps: multiplying the monthly market rent by 12 to find the annual rental income ($11,604), and then dividing by the median home value. This lower yield reflects the reality that market conditions may not always align with federal guidelines.

Given the 8.8% renter density in ZIP 37301, it's important to note that the number of days on market (DOM) is listed as N/A, which suggests limited data on how quickly properties are rented out. However, the lower market rent scenario appears more realistic for several reasons:

Market Dynamics: Actual market rents tend to be influenced by supply and demand, often deviating from government-set FMRs.
Rental Participation: With only 8.8% of residents being renters, landlords must consider the likelihood of finding tenants willing to pay the higher FMR rate.
Competitive Landscape: Other rental options in the area might not adhere strictly to FMRs, making it challenging to command higher rents consistently.

While the FMR-based gross yield is slightly higher, the market rent scenario offers a more grounded perspective on potential returns. Landlords and small-portfolio investors should focus on the market rent of $967 per month when evaluating the feasibility of Section 8 participation in ZIP 37301.

Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).

About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.